The scandal occurred once the product reached the shelves, They were removed from the shells infectedwith cynadine and afterwards returned.
Once the connection was made between the Tylenol capsules and the reported deaths, public announcements were made warning people about the consumption of theproduct. Johnson & Johnson faced the dilemma in the best way; dealing with the problem without destroying the reputation of the company and its most profitable product.
Johnson & Johnson conducted animmediate product recall from the entire country which amounted to about 31 million bottles and a loss of more than $100 million dollars. Also they took out all the advertisement of the product.Although Johnson & Johnson knew they were not responsible for the tampering of the product, they assumed responsibility by ensuring public safety first and recalled all of their capsules from the market.To re introduce the product to the market Johnson & Johnson took four steps.
1. Tylenol products were re-introduced containing a triple-seal tamper resistant packaging. It became the first companyto comply with the Food and Drug Administration mandate of tamper-resistant packaging.(Mitchell 1989) Furthermore, they promoted caplets, which are more resistant to tampering.
2. In order tomotivate consumers to buy the product, they offered a $2.50 off coupon on the purchase of their product. They were available in the newspapers as well as by calling a toll-free number. (Mitchell 1989)
3. Torecover loss stock from the crisis, Johnson & Johnson made a new pricing program that gave consumers up to 25% off the purchase of the product. (Mitchell 1989)
4. Over 2250 sales people made...